Microsoft’s appetite for 5G remains robust as the computing giant has acquired virtualized network software provider Metaswitch Networks in a move to further bolster its 5G-based networking portfolio. The deal comes less than two months after Microsoft acquired virtualized evolved packet core (vEPC) vendor Affirmed Networks.

Yousef Khalidi, corporate VP for Azure Networking at Microsoft, explained in a blog post that the deal deepens Microsoft’s move toward “working with operators as they increasingly embrace software-based solutions and continue to support the advancement of cloud-based networking while helping create new partnership opportunities for existing network equipment providers.

“Our intention, over time, is to create modern alternatives to network infrastructure, enabling operators to deliver existing and value-added services – with greater cost efficiency and lower capital investment than they’ve faced in the past,” he explained.

Financial details of the deal were not released, but Metaswitch has an extensive history in the software and telecommunications space. This includes its Project Clearwater, which was the basis for the cloud-based IP Multimedia Subsystem (IMS) demonstration of a CloudNFV prototype.

More recently, Metaswitch had been involved in Microsoft’s Azure Edge Zones platform that it rolled out in late March. That platform is designed to embed compute, storage, and networking resources at the edge of carriers’ 5G networks.

“Microsoft is doubling down with a second acquisition and it’s a smart move to position Azure favorably with operators relative to the Ericsson’s and Nokia’s of the world trying to position their telco cloud offerings,” Will Townsend, senior analyst at Moor Insights & Strategy, said of the deal in an email to SDxCentral. “Virtualization has the potential to deliver significant capital and operational expense savings as well as deliver new 5G services faster and that’s the compelling aspect of it."

The Affirmed acquisition provided Microsoft with a vEPC platform that supports 5G deployments. Affirmed last year launched its UnityCloud platform that supports 5G standalone (SA) deployments. That launch followed the introduction of its 5G non-standalone (NSA) mobile core platform that Affirmed also demonstrated running on top of Amazon Web Services (AWS) cloud platform.

Khalidi explained that Microsoft would combine the two assets to further target the telecommunications industry.

“Microsoft intends to leverage the talent and technology of these two organizations, extending the Azure platform to both deploy and grow these capabilities at scale in a way that is secure, efficient, and creates a sustainable ecosystem,” he wrote.

Khalidi also echoed the harmonious statement toward existing vendors that he provided following Microsoft’s acquisition of Affirmed.

“We will continue to partner with existing suppliers, emerging innovators, and network equipment partners to share roadmaps and explore expanded opportunities to work together, including in the areas of radio access networks (RAN), next-generation core, virtualized services, orchestration, and operations support system/business support system (OSS/BSS) modernization,” he wrote of the Metaswitch deal. “A future that is interoperable has never been more important to ensure the success of customers and partners.”

The latest deal could also throw more fuel on a competitive fire that has started to rage among cloud providers targeting the 5G space.

IBM, for instance, last week launched its IBM Telco Network Cloud Manager that runs on RedHat’s Kubernetes-focused OpenShift platform and provides automation capabilities to orchestrate virtual network functions (VNFs) and container network functions (CNFs), which typically run on virtual machines (VMs) and in containerized environments, respectively.

Other hyperscale cloud providers like AWS and Google have also increased their presence in the space. AWS with its Wavelength product and Google with its Mobile Edge Cloud platform.

“I suspect rivals will claim they’ve been at it longer and have the relationships already in place with operators,” Townsend said of how Microsoft rivals might respond to the latest deal. “However, Microsoft has market presence and could be very disruptive.”